Preemptive Rights and Privatization
Many governments have concluded joint ventures with private investors that contain preemptive rights contractually restricting the rights to transfer ownership of a company's securities. The privatization of these joint ventures often places g...
| Main Authors: | , |
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| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1998/12/441572/preemptive-rights-privatization http://hdl.handle.net/10986/11512 |
| Summary: | Many governments have concluded joint
ventures with private investors that contain preemptive
rights contractually restricting the rights to transfer
ownership of a company's securities. The privatization
of these joint ventures often places governments in an
awkward situation. Now wishing to sell some or all of their
shares, they find themselves caught between the desire to
divest a good price, or at least a politically defensible
one, and the need to comply with the contracts they have
signed. What can they do? Depending on the amount of
preemptive rights in the privatization portfolio,
governments can adopt either a case-by-case approach or a
more comprehensive solution. This Note sets out the options. |
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